Sung So Lim v. Marumoto
Sung So Lim v. Marumoto
Opinion of the Court
■ OPINION OF THE COURT BY
The complainant, appellant, brought a suit in equity to cancel and set aside a bill of sale and an assignment of lease from respondent T. Miyauchi to respondent T. Marumoto, also a lease from one J. G. Henriques to respondent Marumoto, averring that complainant was, at the time of these transfers, a creditor in a large amount of the respondent Miyauchi and that the said several transfers were fraudulent and made with the intent and purpose of preventing complainant from collecting the indebtedness due him from respondent Miyauchi. At the conclusion of the trial the circuit judge rendered a de-, cisión dismissing the bill of complaint and a decree to that effect was thereafter entered. The complainant appeals to this court. The appellant relies on three specifications of error claimed to have been committed by the circuit judge, to wit, (1) that the evidence discloses that a secret partnership existed between Miyauchi and Marumoto and that therefore the conveyance of Miyauchi to Marumoto is void as against complainant; (2) that the instruments sought to be set aside were without consideration and void as against complainant; and (3) that the transactions between Miyauchi and Marumoto relating to the bill of sale, the assignment of lease and the new lease to Marumoto are tainted with fraud.
There was unusual harmony in the evidence introduced at the trial. Briefly stated this evidence shows that in the year 1908 respondent Miyauchi was indebted to the
The evidence shows that Marumoto acquired the prop
The test of a fraudulent conveyance in the case of a transfer of this nature made for a valuable consideration is the mutual fraudulent intent of the parties. Fraudulent intent on the part of one is not sufficient without a corresponding intent on the part of the other. See 12 R. C. L. p. 531. The rule is well settled that a conveyance by a debtor to one of his creditors in payment of his claim is. not invalidated by the fact that it was made with an intent on the part of the vendor to defraud other creditors where such intent is not known to, or participated in by, the purchaser. We can find nothing in the record in this case from which it could be fairly inferred that the respondent Marumoto was actuated other than by honest
The judgment and decree herein by the circuit judge dismissing the bill of complaint are affirmed.
Reference
- Full Case Name
- SUNG SO LIM v. T. MIYAUCHI AND T. MARUMOTO
- Status
- Published
- Syllabus
- Fraud — conveyance—intent of parties. The test of a fraudulent conveyance for a valuable consideration is the mutual intent of the parties. Fraudulent intent on the part of one is not sufficient without a corresponding intent on the part of the other. Same — same—same. The rule is settled that a conveyance by a debtor to one of his creditors in payment of his claim is not invalidated .by the fact that it . was made with an intent on the part of the vendor to defraud other creditors, where such intent is not known to, or participated in, by the purchaser. Same — same—presumption of law where vendee is in possession of property. The law presumes the possession of the vendee to have been lawfully acquired, and where it appears that a sufficient consideration was paid the transfer will be upheld unless it be affirmatively shown that he purchased in bad faith.